Chart Analysis: Silver Breakout Has Legs, Here Is The Target

While lagging gold, silver appears to be in breakout mode. After clearing resistance at $34.50, it jumped to $37.00 before consolidating in the $36.00 range. This is exactly what a technical trader wants to see. Let me explain. After a breakout, you do not want price to fall back below the breakout line of $34.50. That would be a failed breakout. In addition, you don't want the surge to continue for too long or the pull back is more dramatic and painful. Instead, the ideal is for the breakout to occur and price to consolidate. This forms a bull flag and signals a high probability of continued upside. That is what silver has done.

The upside target remains at $39.25, a long-term ascending trend line going back to the major pivot highs from late 2022, 2023 and 2024. This is the obvious spot where silver will slam into resistance.

For the bullish case to hold, silver must hold $34.50. Any drop below would be a failure of the bullish pattern.